Author: Teresa Poletti

Investors must remember that anything involving a stake Large-scale investment projects have the potential for huge changes in the future.

U.S. President Trump announced on Tuesday (January 21) the "Stargate" jointly funded and constructed by OpenAI, Oracle and SoftBank Group. ) project, which commits to investing at least $500 billion in artificial intelligence in the United States.

Not long after the "Stargate" project was announced, Tesla CEO Musk posted a message on social media Committed funds.

Musk wrote, "They actually don't have that much money, and I have reliable sources."

OpenAI, Oracle and UAE AI investment company MGX are several other early investors in "Stargate", Futurum Research is responsible for researching corporate CIOs Dion Hinchcliffe, Vice President of Behavior Hinchcliffe believes that there are other investors who want to join, but he expects only the strongest financial companies such as Blackstone Group to be able to join.

Politicians like to tout big numbers when they promise more investment and more jobs, but the projects don’t always live up to their claims Played out like that, it's another major reason why investors should take Stargate's huge investment numbers with a grain of salt.

Trump should be familiar with this. During his first term, Foxconn pledged to invest $10 billion to build a factory in Wisconsin as part of Trump's plan to revive U.S. manufacturing, but Foxconn ended up significantly scaling back the investment, according to a 2021 Reuters report , Foxconn chose to invest only $672 million and reduce the number of new jobs to 1,454, a far cry from the 13,000 originally promised in 2017. According to Wisconsin Public Radio, Foxconn currently employs more than 1,000 people responsible for building data servers.

The "American Chip Act" introduced during the term of former US President Biden also approved an investment of US$280 billion to build a new semi-finished business in the United States.conductor plants, but some of the high-profile new plants associated with the program have encountered construction delays, labor shortages and regulatory problems.

"Stargate" claims that its infrastructure will create "hundreds of thousands of jobs," however, Oracle co-founder and chief technology officer Larry Eyre Larry Ellison often boasts to Wall Street analysts on earnings calls about Oracle's automated databases, the automation capabilities of its cloud computing services and its low labor costs, so if the goal of the Stargate project is to build data centers, then building them in factories Eventually, most of the jobs it promised will disappear. Furthermore, if improvements in artificial intelligence do bring a lot of jobs, these companies are ignoring the fact that jobs in other industries will disappear.

OpenAI, which developed ChatGPT, may be the biggest beneficiary. The company can use the data center established by Oracle to train more data and implement Sam· The long-term goal of Sam Altman’s AGI (Artificial General Intelligence) is that artificial intelligence will reach or exceed human intelligence.

At the same time, Musk owns a company called xAI in the field of artificial intelligence. This may be his response to Trump given his close relationship. The reason why Stargate launched an attack and "started a war" with Ultraman was that he and Ultraman had always had different opinions on the development direction of OpenAI.

Altman responded to Musk's post by calling his statement "wrong" and inviting Musk to visit the first data facility under construction Center, meanwhile, Altman called Musk "the most inspiring entrepreneur of our time."

Investors should question the claims by Stargate proponents that the What exactly is meant by the statement that the project will benefit the United States through the “reindustrialization of America.” Building 10 massive data centers in Texas to train large language models and then run those models seems to benefit OpenAI and its hardware and software suppliers rather than the rest of the U.S. industry.

After the announcement of the "Stargate" project, the stock prices of companies providing hardware and software rose on Wednesday (January 22), especially Nvidia, Oracle, ARM and Major investor SoftBank. But investors should not forget that any large-scale investment project involving stakes will undergo huge changes in the future.possible.

So, while Musk has made many questionable statements in the past—such as his commitment to self-driving taxis and self-driving capabilities— —but this time, he was legitimately questioning his rivals.